The Australian Department of the Treasury has published exposure draft legislation to expand tax incentives for Venture Capital Limited Partnerships (VCLPs) and Early Stage Venture Capital Limited Partnerships (ESVCLPs). The proposal would raise investment, asset and committed capital thresholds from July 1, 2027, enabling qualifying funds to invest in larger businesses and participate in follow-on funding as investees grow. It would also give legislative effect to the closure of the Eligible Venture Capital Investor (EVCI) program to new applications from 7:30 p.m. AEST on May 12, 2026. For VCLPs, the maximum pre-investment asset value of an investee and its connected entities would rise from AUD 250 million to AUD 480 million. For ESVCLPs, the equivalent threshold would increase from AUD 50 million to AUD 80 million, the asset ceiling for full tax exemption on investment returns would rise from AUD 250 million to AUD 420 million, and the maximum committed capital would increase from AUD 200 million to AUD 270 million. The investment thresholds would apply to new and further investments from July 1, 2027, while the higher ESVCLP committed capital limit would cover existing partnerships and new or undecided registration applications from that date.
2026-09-11Department of Treasury (Australia)
Australian Department of the Treasury consults on expanded venture capital tax incentives and closure of the Eligible Venture Capital Investor program
The Australian Department of the Treasury is consulting on draft legislation to raise key VCLP and ESVCLP investment, asset and committed capital thresholds from July 1, 2027. The changes include increasing the VCLP investee asset limit to AUD 480 million and the ESVCLP committed capital cap to AUD 270 million. The draft would also legislate the closure of the EVCI program to new applications from May 12, 2026.